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One bond in Forest, Inc., has 9 years to maturity and a coupon of 4.2%. The coupon is paid semiannually. If the YTM is 6%, what is the value of the

One bond in Forest, Inc., has 9 years to maturity and a coupon of 4.2%. The coupon is paid semiannually. If the YTM is 6%, what is the value of the bond?

Marcia Food Company has a bond with 15 years to maturity and a coupon rate of 6%. The coupon is paid annually. If the current price of the bond is $1,200, what is the YTM?

Rice, Inc., recently paid a dividend of $2.80 per share. The dividend on Rice’s stock is expected to grow at a rate of 6% per year forever. Your required rate of return on Rice’s is 11%. How much would you be willing to pay for Rice’s stock today?



Top Answer

Hi, please check... View the full answer

2.xlsx

1 Given,
Par Value
Time
Coupon
Payment frequency
YTM
Value of the Bond = 2 Given,
Recent dividend
Growth rate
Required return
Price willing to pay $1,000
9 Years
4.20%
2
6%
$876.22 $2.80 per share...

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Other Answers

Value of bond = 21*[1-(1+0.03)^-18]/0.03 +1000/(1.03)^18... View the full answer

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